Question 1

Can I use a DSCR loan to buy a primary residence?

Accepted Answer

No. DSCR loans are for investment properties only. For a primary home, bank statement loans are the Non-QM option.

Question 2

Do both loans require good credit?

Accepted Answer

Yes, both are Non-QM but still have credit minimums. Most lenders want 660 or higher, though requirements vary.

Question 3

Which loan has a lower down payment?

Accepted Answer

Bank statement loans can go as low as 10% down on primary homes. DSCR loans typically require 20–25% for investment properties.

Question 4

What if my rental property breaks even on cash flow?

Accepted Answer

A DSCR at exactly 1.0 may still qualify with some lenders. Below 1.0, your options narrow fast — bank statement may work better.

Question 5

Can a self-employed investor use both loan types?

Accepted Answer

Yes. Some investors use a bank statement loan for one property and a DSCR loan for another. It depends on the deal.

Question 6

Are rates higher on these loans than conventional?

Accepted Answer

Generally yes. Non-QM loans carry more risk for lenders. Rates vary by borrower profile and market conditions.

Bank Statement vs DSCR Loans in Atwater, CA